Optimize Costs and Profitability across Your Trading Network with
E2 Multi-Tier Cost Management
Brand owners are increasing their dependence on outsourced design and manufacturing models for the cost advantages they provide. As a result, procurement professionals must negotiate component, assembly, and system contracts with multiple types and tiers of partners around the globe. Total volume price breaks, transportation costs, regional tax advantages, cost to serve, risk mitigation, aftermarket promotions, and other factors play important roles in purchasing decisions. But these factors can change at any time during the production process, even after an order has been placed, making it difficult to optimize total landed costs.
E2 Multi-Tier Cost Management (MTCM) enables brand owners, suppliers, and contract manufacturers to collaborate in real-time during the production process on bills of material (BOMs) and related costs, cost forecasts, and rebates. It captures frequent product and cost changes in an "execution BOM," which is then integrated into multi-tier business processes for cross-network visibility and timely cost management.
E2 Multi-tier Cost Management (MTCM) provides brand owners with the first and only multi-tier cost management solution with a cloud-based, execution BOM. MTCM allows brand owners to manage costs with multiple costing scenarios, including volume-based costing and date-based costing, and supports multiple cost types for each BOM.
- Multi-tier process enablement
- Landed cost management
- Trading partner synchronization
- Repair BOMs
- Cost forecasting
- Supply allocation
- Rebate management
- Manages an execution BOM to enable frequent review of component pricing across tiers and with multiple suppliers
- Enables trading partners to always negotiate cost data based on the latest BOM
- Reduced supply chain operational costs
- Enables effective dates that are out of cycle versus purchasing and PLM systems
- Supports the reverse logistics pricing considerations for returns supporting disposition processes
Designed to bridge the gaps created by traditional "management by spreadsheet" and communication via phone, faxes, and email, E2 Multi-tier Cost Management provides brand owners with the cloud-based tools they need to manage dynamic, distributed BOMs and the costs attached to them throughout the multi-tier trading partner network.